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diogenes01 (25.28)

TIE - future growth?

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November 13, 2012 – Comments (6) | RELATED TICKERS: TIE.DL

I just recently started investing and I managed to snag a few shares of TIE before it shot up 40%.  I'm wondering what people's thoughts are on whether continuing growth is likely and sustainable, or if this is just an upswing due to the merger anouncement?  Any insight would be appreciated.

6 Comments – Post Your Own

#1) On November 13, 2012 at 4:03 PM, dreukauf (84.26) wrote:

I also bought shares before the 42% jump Im wondering same.

It was reccomended by stock advisor.

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#2) On November 13, 2012 at 11:57 PM, HarryCaraysGhost (99.59) wrote:

Hello,

I'll try and answer (simply because no one else has stepped up to the plate).

Always tempting to take some profit off the board after a move like that. Something my Father always told me was that no one ever wen't broke while taking profits.

Personally I would prefer a double that way you can sell half and keep the remaining shares for free.

So the question is-

Why did you buy TIE in the first place? Is it a long term hold...

 Or if it was simply a trade, then no worries with taking the money and running.

Fool Disclosure, no position in TIE, and see no reason to open one up in the future.

Cheers.

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#3) On November 14, 2012 at 12:35 AM, maniladad (< 20) wrote:

I think the reason for the price jump was a buyout agreement at $16.50. At present TIE has the option to look for someone who will give them a better price. Apparently if nothing changes you just have to wait and you'll get your money without doing anything. That seems to be the consensus on the best approach. Options holders have to be more proactive.

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#4) On November 14, 2012 at 7:40 AM, rd80 (97.31) wrote:

There are three possible outcomes from holding TIE.

1.  The Precision Cast Parts deal goes through and you get $16.50 whenever it closes.

2.  Another company comes along with a better deal and you get that higher price.

3. Something happens to blow the PCP deal and TIE falls back to a lower price.

#3 is unlikely, but it happens.  I don't know enough about the deal to guess at the likelihood of #1 versus #2.  Since TIE is trading above the deal price, the market thinks there's some chance at a higher bid.

This should not be considered investment advice, but were it me, I'd take the sure 40+% gain and sell while it's trading above the offer price or maybe sell some and hold some hoping for a bidding war.

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#5) On November 14, 2012 at 10:20 AM, Mega (99.96) wrote:

The merger will probably close, in which case you will receive $16.50 cash per share around March 2013. If I owned TIE I would sell now since I think there is a low likelihood of a higher offer.

Congrats on your gain. Just remember that luck played a role in this and many future investments will not work out this well this quickly.

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#6) On November 14, 2012 at 10:32 AM, Mega (99.96) wrote:

http://www.businessweek.com/news/2012-11-09/precision-to-buy-titanium-metals-for-2-dot-9-billion

Correction, the deal is scheduled to close next month.

TIE's controlling shareholder Harold Simmons has a 45 percent stake which he is voting for the merger. That makes the deal very likely to close on the agreed terms.

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